U.S. stocks extend gains on Greek progress

Apple shares up on report of next-generation iPad tablet weeks away

KateGibson

NEW YORK (MarketWatch) — U.S. stocks closed higher for a third day Thursday, with technology shares up the most, after Greece said it had an austerity deal and jobless claims fell again last week.

“We’ve made some significant moves in a short period of time,” said Michael Gibbs, director of equity strategy at Morgan Keegan.

Bumping up against recent highs, the Dow Jones Industrial Average on Thursday closed at its highest since May 19, 2008; the S&P 500 Index ended at its loftiest level since July 7, 2011; and the Nasdaq Composite Index ended at its highest close since Dec. 12, 2000.

The rise has come amid “economic news that’s more positive than negative and a growing consensus of less fear about Europe,” added Gibbs.

Heavily influenced by technology shares, the Nasdaq Composite
COMP, -0.01%
in particular was lifted Thursday by Apple Inc.
AAPL, -0.87%
up 3.5% to $493.17, a record, after a report said the company would introduce its next-generation iPad tablet in early March. The website AllThingsD said the new tablet was expected to have a quicker processor and better display resolution. Read more on AllThingsD.

The Dow Jones Industrial Average
DJIA, -0.32%
rose 6.51 points, or 0.1%, to 12,890.46. United Technologies Corp.
UTX, -0.42%
led gains for 16 of the Dow’s 30 components. Shares gained 2.5% following media reports that said the manufacturer was exploring the sale of its pump- and compressor-making unit.

The S&P 500
SPX, -0.23%
added 1.99 points, or 0.2%, to 1,351.95, with technology the best performing and health care hardest hit among its 10 sectors.

The Nasdaq Composite climbed 11.37 points, or 0.4%, to 2,927.23.

Advancers just edged past decliners on the New York Stock Exchange, where 759 million shares traded. NYSE composite volume was 4 billion, under last year’s daily average.

Oil prices gained for a third day, with crude futures for March delivery
CL2H
settling at $99.84 a barrel, up $1.13, or 1.1%, on the New York Mercantile Exchange. Read more on oil prices.

Gold also gained, bolstered by the euro’s rise against the dollar
EURUSD, +0.0000%
and heightening the appeal of the dollar-denominated commodity. Gold futures for April delivery
GC2G
added $9.90 to close at $1,741.20 an ounce on the Comex division of the Nymex. Read more on gold futures.

Hold the applause

In Athens, Greek Prime Minister Lucas Papademos said the government’s talks with international creditors had “concluded successfully” Thursday morning. “This program accompanies the new loan agreement to finance Greece with 130 billion euros,” he added.

The statement from Papademos came after days of haggling among Greece’s main political parties.

Wall Street might opt to hold its applause on the Greek accord “until it’s officially approved by the finance ministers,” said Chip Cobb, portfolio manager at Bryn Mawr Trust. “How many times have we been down this path and come out with nothing?” Read more on Greek deal.

Bank of England unveils more QE

(2:39)

The Bank of England says it will buy another £50 billion in government bonds with freshly created money in an effort to shore up the U.K. economy.

“I do think, although this is a very early step, they will come to their senses and get this thing resolved,” Cobb commented.

Wall Street knew Greece was “going to rush a deal through,” said Gibbs at Morgan Keegan. “There are still a lot of moving parts.”

The Labor Department’s count of Americans filing initial claims for jobless benefits dropped by 15,000 last week to 358,000. The four-week moving average fell to 366,250, its lowest since April 2008. Read more on weekly U.S. jobless-benefits claims.

“We’re continuing with that trend of better-than-expected claims,” remarked Gibbs.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.